ByWith Analysis From Monitor Correspondents Around The WorldEdited By Karla VallanceNovember 24, 1981

Washington
— ''A smoke screen and a farce.'' That's what Kenneth T. Blaylock, president of the American Federation of Government Employees (AFGE), said Monday of President Reagan's budget veto, Monitor correspondent Peter Grier reports.

''If there really is an appropriations crisis,'' Mr. Blaylock said, ''why doesn't he have to lay everybody off? There are 2 million federal workers. He's only proposing to furlough 400,000.''

The union represents 700,000 federal workers. It is telling members who perform essential services, as defined by President Reagan, to report to work. Those whose jobs are less critical are to demand assurance they will be paid.